ECB Cuts Rates, LME Zinc Rebounds [SMM Zinc Morning Comment]

Overnight, the European Central Bank cut interest rates for the first time in five years! Hamas rejected Israel's ceasefire proposal; the Israeli military announced it had completed the deployment for a large-scale military operation against Hezbollah in Lebanon; Russian Deputy Prime Minister Novak stated that the drop in oil prices was due to speculative factors and misinterpretation of the OPEC+ agreement; the S&P 500 and Nasdaq hit new all-time highs during the session; Musk's Starship achieved a new breakthrough, successfully soft-landing in the Gulf of Mexico; the China Securities Regulatory Commission stated that the number of delisted companies is not expected to increase significantly in the short term; media reported that regulatory authorities are currently formulating detailed policies for algorithmic trading, but no final draft has been made yet.
Overnight, LME zinc opened at $2,882.0/mt, hit a session low of $2,877.5/mt at the beginning, then longs pushed LME zinc higher, with the focus rising to around $2,905.0/mt. During the European trading session, LME zinc's focus fell to around $2,885.0/mt, then fluctuated upwards, with the focus returning to around $2,910.0/mt, hitting a session high of $2,924.0/mt, and finally closed up at $2,918.0/mt, up $37/mt, or 1.28%. Trading volume decreased to 10,000 lots, and open interest decreased by 3,892 lots to 238,000 lots. Overnight, LME zinc inventories increased by 3,125 mt to 260,775 mt, up 1.19%. Overnight, the European Central Bank cut interest rates for the first time in five years, reigniting macro optimism, and LME zinc rebounded to correct its decline. LME zinc is expected to fluctuate strongly today.
Overnight, the most-traded SHFE zinc contract opened at 24,090 yuan/mt, hit a session low of 24,045 yuan/mt at the beginning, then longs took control, pushing SHFE zinc higher, with the focus rising to around 24,255 yuan/mt, hitting a session high of 24,290 yuan/mt at the end of the trading session, and finally closed up at 24,265 yuan/mt, up 270 yuan/mt, or 1.13%. Trading volume decreased to 71,000 lots, and open interest decreased by 3,026 lots to 75,000 lots. Domestic inventory reduction provided support for zinc prices, coupled with the impact of overseas sentiment, SHFE zinc is expected to continue rallying during the day.